Page 20 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
3. APPROPRIATION OF PROFIT
The Directors have proposed the following appropriation of profit, expressed in thousands of euros, pending approval
by the General Shareholders’ Meeting:
Amount
Proposed appropriation
Loss for the year (8,594)
Total (8,594)
Appropriation to:
Prior year losses (8,594)
Total (8,594)
Limitations on the distribution of dividends
The Company is obliged to transfer 10% of the profit for the year to a legal reserve until this reserve reaches an amount
at least equal to 20% of share capital. Unless the balance of the reserve exceeds this amount, it cannot be distributed
to shareholders. At the date of preparation of these financial statements, the mandatory legal reserve had been duly
set aside.
Once the legal or the company bylaw requirements have been met, dividends may only be distributed against profit for
the year or against freely distributable reserves if the value of equity is not lower than share capital or would not be
caused to be less than share capital by the distribution of dividends. Accordingly, profit recognized directly in equity may
not be distributed either directly or indirectly.Where losses exist from previous years that reduce the Company’s equity
to below the amount of share capital, profit must be allocated to offset these losses.
Companies are required to set aside a restricted reserve equal to the amount of goodwill shown in assets.An amount of
profit representing at least 5% of goodwill must be earmarked for this purpose. If no profit or insufficient profit is earned,
unrestricted reserves must be used for this purpose. As this year the parent reported losses, the related allocation for
goodwill will be made against voluntary reserves (14,399 thousand euros).